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Real Estate Tips: Articles on the Flagstaff Real Estate Market: Past Articles [June 2009]

We write informative monthly articles about timely real estate topics. Be sure to visit our archives so you can read past articles, which cover a range of Flagstaff real estate topics. You can also sign up for our monthly newsletter.

Distressed Property; what it means and what you can do.

In last month’s article I mentioned the term “Distressed Property”.  Soon after I was admonished by one of my readers who said that I had not defined “distressed” in my article.  With this months column I would like to define distressed property and give some advice to anyone who may be having difficulty making their mortgage payments.

Distressed property can be anyone of the following.

• Property that is in poor physical condition.
• Property that is or will soon be in some stage of the foreclosure process.
• Property owned by a person or persons who are experiencing a period of financial instability.
• Property on which the mortgages total an amount higher than the current value and the owner must sell.

There are lots of reasons why someone’s home may fall into the distressed category and numerous statistics that show how we arrived at our current situation.  However each and every one of us has our own unique situation.  If you find yourself in a situation where you are facing foreclosure on your home you should seek help from your lender as soon as possible.  If your mortgage company is agreeable, they may permit you to sell your home through the “short sale” process.  In a short sale situation the lender will allow you to sell the property for an amount less that what you owe and they will absorb the loss.

If your mortgage company allows you to go the short sale route you will be in much better shape than allowing for foreclosure.  Foreclosure can have numerous negative implications on your future credit that may not be as much of a factor in a short sale.

If you find yourself in a distressed property situation seek the counsel and services of an educated licensed real estate agent.  Agents who have had training in distressed property sales can help guide you through the process so that you can make the right decisions.

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“Mary Monday made the experience of selling my home a genuine pleasure. It delights me to know there are true professionals left in the world.”—BS